Gold has surged past $4,000 per ounce for the first time in history. Silver has followed suit, recently rising above $50 per ounce to levels not seen in decades. For long-time believers in precious metals, this is a vindication. For newer investors, it raises questions. Why are prices rising? Will they continue? And how can investors get exposure without taking unnecessary risks?
In this article, we look at gold and silver not just as shiny commodities, but as serious investment vehicles. We explore what they represent to markets, the reasons behind their latest rally, and the range of ways retail investors can participate, including physical metals, ETFs, and small-cap mining stocks. We also discuss the risks, and finish with a grounded look at where prices might be heading next.
Why Gold and Silver Are Investment Commodities
Gold has served as a store of value for millennia. Its scarcity, durability, and global acceptance give it a unique role in the financial system. Unlike fiat currencies, gold cannot be printed or devalued by central banks. It has consistently protected wealth during periods of inflation, devaluation, and crisis. This is why central banks continue to accumulate gold, particularly since the Russian invasion of Ukraine in 2022, as a hedge against instability.
Gold is also highly liquid and free from counterparty risk. It trades around the clock 5 days per week and is held by institutions, governments, and individuals alike. In times of stress, capital flows into gold precisely because it sits outside the credit system. This makes it a core holding in portfolios looking to balance risk across cycles.
Silver shares many of gold’s qualities but also has critical industrial uses. It is essential in solar panels, electric vehicles, semiconductors, and medical devices. This dual role, part monetary, part industrial, makes silver more volatile but also more sensitive to economic growth. It often lags gold early in rallies, but can outperform when industrial demand rises.
For investors, gold offers defence, while silver adds cyclical upside. Holding both provides diversification within the metals space. In an era defined by inflation, energy transition, and geopolitical tension, their combined relevance has only grown. They are not just commodities, they are tools for navigating uncertainty.
What’s Driving the Rally, and Why Prices Haven’t Fallen Back
Over the past six months, gold has climbed by more than $800 pe ounce, or 25%, and has now broken above the symbolic $4,000 level. Silver has surged even faster, up over 30% in the same period, recently trading at $51.22. These aren’t just speculative blips. There are real forces at play.
First, inflation remains persistent in much of the developed world. While headline inflation has eased, core inflation is sticky. Central banks have limited tools left, and real interest rates remain low. That environment favours non-yielding assets like gold and silver.
Second, geopolitical risk has surged. From war in Ukraine and instability in the Middle East to growing tensions around Taiwan and de-dollarisation movements by the BRICS nations, investors are seeking safe havens. Gold is still the ultimate fallback asset.
Third, central banks are accumulating gold at the fastest rate in decades. China, India, Turkey and other emerging markets are diversifying away from the dollar. Their consistent demand provides a structural floor beneath prices.
Finally, mining supply has remained constrained. Years of underinvestment, permitting delays, and declining ore grades have tightened the market. At the same time, industrial demand for silver, particularly for solar and electronics, is forecast to reach record levels in 2025. That is creating a supply-demand imbalance that supports higher prices.
Could This Rally Reverse, and What Would That Look Like?
No rally is permanent. Gold and silver are volatile assets, and sharp corrections are always possible. In the short term, the biggest risk is a change in interest rate expectations. If inflation falls faster than expected and central banks shift to a more hawkish stance, real yields could rise. That would reduce the appeal of precious metals.
Another risk is the U.S. dollar. If the dollar strengthens materially, it tends to pressure gold and silver prices, since they are priced in dollars globally. Strong economic data from the U.S. or fiscal tightening could trigger such a move.
There is also the potential for a speculative unwind. Both gold and silver are showing signs of being overbought on daily charts, with gold’s Relative Strength Index (RSI) at 75 and silver’s at 80. These elevated levels suggest momentum may be stretched. If traders begin to take profits, especially in silver, which is more prone to sharp reversals, it could trigger a broader wave of selling.
That said, the underlying drivers, inflation, central bank demand, geopolitical risk, are unlikely to vanish overnight. Even if prices pull back, many analysts see strong support for gold above $3,700 and silver above $40. The question is not if there will be volatility, but whether it represents a buying opportunity or a sign of a trend reversal.
How to Get Exposure: Physical, ETFs, and Equities
For retail investors, there are three primary ways to gain exposure to gold and silver.
The first is through physical metal. This includes coins, bars, and vault-stored bullion. The benefit is direct ownership, outside the financial system. However, there are downsides: premiums, storage costs, and lower liquidity. Still, for those seeking wealth preservation, physical gold and silver remain popular.
The second option is ETFs. These allow investors to gain exposure to the metal price without owning the asset. Well-known gold ETFs like SPDR Gold Shares (GLD) and silver ETFs like iShares Silver Trust (SLV) track the spot price and offer high liquidity. Some ETFs are backed by physical metal, others by futures contracts.
The third route is via mining equities. These include major producers, mid-tiers, and juniors. Miners offer leverage to metal prices: a 10% increase in gold can translate to a 30–50% move in a well-run mining stock. However, they also come with operating risks, jurisdictional risk, and capital needs. Picking the right names is critical.
Company Spotlights: Junior and Mid-Tier Gold and Silver Miners
First Class Metals (LON: FCM)
First Class Metals is a UK-listed junior exploration company with a portfolio of properties in Ontario, Canada. Its flagship projects include the North Hemlo and Sunbeam assets, both situated in geologically proven zones. The company has reported encouraging sampling and geophysical results throughout 2024 and 2025, indicating potential for gold mineralisation at depth.
As a pure exploration play, First Class Metals offers significant leverage to the gold price, but with high associated risk. Its ability to raise capital and advance drilling programs remains central to its progress and there is growing market speculation that the company may look to sell non-core assets to strengthen its balance sheet. In a strong gold environment, early-stage explorers like this often attract speculative interest and can re-rate quickly on positive news.
Wishbone Gold (AIM: WSBN)
Wishbone Gold is a junior explorer focused on gold in Western Australia’s Paterson Range, near Greatland’s Havieron project. Following a successful £4 million equity raise, the company has expanded its exploration program at the Red Setter Gold Dome Project, located immediately adjacent to Greatland Resources’ recently acquired Telfer mine, formerly owned by Newmont.
Further, Wishbone recently announced the mobilisation of both a diamond drill rig and a reverse circulation (RC) rig on site. The RC rig will accelerate progress by handling pre-collars and targeting shallower gold and copper intercepts, complementing deeper diamond drilling already underway. Drilling is active and ongoing, with results expected to drive the next phase of news flow.
With relatively low overheads and a tight share structure, Wishbone provides exposure to a high-potential region. However, the company remains pre-resource, meaning investors are betting on discovery. In the current climate, that bet is more appealing, but still speculative.
Fulcrum Metals (AIM: FMET)
Fulcrum Metals is an AIM-listed junior explorer focused on gold and uranium across Canada, with projects in Ontario and Saskatchewan. The company has recently undergone a strategic pivot, having closed the sale of its Tully Gold Project to Loyalist in September 2025. This move reflects a sharpening of focus on its remaining gold and uranium exploration assets, particularly the Schreiber-Hemlo and Charlot-Neely projects.
In its interim results published in late September, Fulcrum reported steady progress across its portfolio. Geophysical surveys at Schreiber-Hemlo and fieldwork at its uranium licences in Saskatchewan were advanced during the period. The company also noted it was reviewing additional project opportunities and partnerships to strengthen its forward strategy, while maintaining a tight cost base.
With the gold price now above $4,000 and uranium sentiment strengthening, Fulcrum is well-positioned to attract renewed market attention. The disposal of Tully adds working capital and simplifies the company’s focus. Like many early-stage explorers, its valuation remains sensitive to commodity moves, news flow, and financing. However, Fulcrum’s exposure to two high-interest metals gives it optionality in a volatile but supportive macro environment.
ECR Minerals (AIM: ECR)
ECR Minerals holds multiple licences in Victoria, Australia, including the Creswick and Blue Moon projects, located in one of the country’s most gold-endowed regions. Recently, the company announced a significantly oversubscribed wrap retail offer, securing fresh capital to advance its exploration programs. This funding boost comes at a pivotal moment for the company’s development plans.
The company has also renewed its efforts to expand Creswick via partnership agreements: its heads of terms for a joint venture intend to bring in additional technical and financial resources. At Blue Moon (formerly “Blue Mountain”), ECR has verified gold mineralisation in initial drilling, reinforcing the project’s potential. It has also given an update on its Raglan site, signalling ongoing field work and regional targeting.
With a higher gold price, previously marginal zones may become economic. The fresh capital and joint‑venture momentum increase the odds of positive re‑rating. If ECR can grow resources, strike deals, or attract a strategic partner, its valuation outlook could change significantly in the near to medium term.
Alien Metals (AIM: UFO)
Alien Metals is a diversified explorer focused on silver, iron ore, and base metals, with a primary focus on Western Australia. Its flagship asset, the Elizabeth Hill Silver Project, is a historic high-grade silver mine undergoing an aggressive redevelopment program. In September 2025, the company announced an accelerated Phase 2 diamond drilling campaign, aimed at both resource definition and expansion.
Recent drilling at Elizabeth Hill has delivered high-grade silver intercepts, with results confirming mineralisation at depth and along strike. These include wide zones of silver-bearing material, which the company believes support near-term development potential. The project benefits from existing infrastructure and historic production, which lowers reactivation barriers if results continue to meet expectations.
In its interim financial results, Alien outlined a lean cost structure and clear focus on advancing its silver and iron ore assets. With silver prices now trading above $50 per ounce, the timing of this campaign aligns well with macro conditions. However, as an early-stage developer, Alien still faces execution and funding risks. Success will depend on consistent drill performance, market sentiment, and the company’s ability to advance the project toward feasibility.
Greatland Resources (AIM/ASX: GGP)
Greatland Resources has evolved from a junior AIM explorer into a dual-listed, institutional-grade gold and copper producer. Its 2024 acquisition of the Havieron deposit and Telfer mine from Newmont gave it full control of two cornerstone assets in Western Australia. With its ASX listing now complete, Greatland has repositioned itself as a vertically integrated miner with growing institutional support.
In its September 2025 quarter update, Greatland reported production of 80,890 ounces of gold and 3,366 tonnes of copper from the Telfer operation. Sales for the quarter totalled 82,199 ounces of gold and 3,277 tonnes of copper, with the All‑In Sustaining Cost expected at the lower end of its FY26 guidance range of US $2,400 to US $2,800 per ounce. The company ended the quarter with US $750 million in cash and no debt, up from US $575 million in June, a US $175 million cash build even after capital expenditure. A US $46 million stamp‑duty payment related to the Telfer‑Havieron acquisition is due in October 2025.
With gold now trading above $4,000 per ounce, Greatland stands out as one of the few mid-tier producers positioned to convert record prices directly into free cash flow. Its low-cost structure, debt-free balance sheet, and dual exposure to gold and copper give it resilience across cycles. For investors seeking leveraged but lower-risk exposure to the gold market, Greatland offers a compelling mix of operational scale, growth potential, and financial strength, attributes that have already begun to separate it from its junior peers.
Risks and Concerns
No investment is without risk, and precious metals are no exception. Gold and silver are historically volatile, often reacting sharply to shifts in interest rate expectations, currency movements, and macroeconomic sentiment. A sudden drop in inflation, a stronger U.S. dollar, or hawkish central bank commentary can trigger corrections of 10–20% or more. While these metals offer long-term defensive qualities, they can experience short-term swings that challenge even seasoned investors.
Physical ownership of gold or silver brings its own complications. Coins and bars must be stored securely, insured, and often come with high dealer premiums. Liquidity may be lower than anticipated, especially during market stress. There is also the risk of counterfeit products or loss, particularly when metals are held outside of verified custodial systems. For some investors, the appeal of direct ownership is offset by the logistical burden of holding and reselling the asset.
ETFs and exchange-traded products offer greater flexibility but are not risk-free. Physically backed ETFs depend on third-party custodians to store and audit the metal. Synthetic or futures-based products carry counterparty and roll-over risks. There can also be tracking error, the ETF may not perfectly follow the spot price, and tax treatment varies by jurisdiction. While more liquid than physical metal, ETFs should still be understood before being used as a core allocation.
Mining stocks add another layer of complexity. Junior explorers, in particular, carry substantial execution risk. These companies often operate without revenue, rely on regular equity raises, and can dilute shareholders significantly. Missed drill targets, permitting delays, cost overruns, or poor management can destroy value quickly. Even larger producers are not immune, operational setbacks, geopolitical issues, or commodity price collapses can all impact earnings and sentiment.
It’s also worth remembering that rising metal prices don’t guarantee equity performance. Many junior miners underperform even in strong bull markets due to weak balance sheets, limited news flow, or poor investor communication. In contrast, some equities may run ahead of fundamentals based on speculative interest alone. Separating credible projects from promotional noise requires time, scepticism, and due diligence. Investors should approach the sector with a clear plan, a long-term view, and an understanding that volatility is part of the journey.
Outlook and Final Thoughts
With gold trading above $4,000 per ounce and silver breaching the $50 mark, investors are right to ask: how much further can this go? On a historical basis, gold is deep into record territory, while silver, despite its surge, still trades below its inflation-adjusted highs from 1980 and 2011. Some analysts believe the momentum could continue. If inflation proves stubborn, interest rates begin to fall, and geopolitical stress deepens, gold could plausibly test $5,000 over the next 12 to 18 months. Silver, driven by both investment flows and industrial demand from solar, EVs, and electronics, could push through $60.
But this upside scenario is not assured. The outlook for precious metals remains highly sensitive to monetary policy, economic data, and market psychology. A stronger U.S. dollar, retreating inflation, or signs of macro stability could trigger consolidation or a correction. Speculative froth can evaporate quickly if investor sentiment turns. Both metals have experienced long periods of range-bound price action in the past, even during strong structural cycles. Timing, therefore, remains critical.
What is clear is that gold and silver are back at the centre of the investment conversation in 2025. Whether viewed as insurance against fiat devaluation, a tactical trade, or a long-term strategic asset, precious metals are no longer a fringe idea. Physical bullion provides security and direct exposure. ETFs offer liquidity and convenience. Mining stocks, especially juniors, provide torque, but with real risks. Choosing the right mix depends on your risk tolerance, time horizon, and conviction.
For investors willing to research, diversify, and stay disciplined, this could be the early stages of a longer-term repricing. Others may use the rally as a moment to rebalance or take profit. Either way, ignoring gold and silver in the current environment is no longer an option. They have reasserted their role, not just as commodities, but as signals, strategies, and stores of resilience in a world that increasingly demands all three.
Disclaimer: The information presented in this article represents the views and analysis of the author and is provided for informational purposes only. It should not be interpreted as financial, investment, or legal advice. Investors should conduct their own due diligence and consult a qualified adviser before making investment decisions. Investing in AIM-listed companies involves risk, and past performance is not indicative of future results.
